Exhibition on machinery, technology to take place in Hanoi

World’s leading brands of measuring devices and automation technology will bring their latest products to the Vietnam Manufacturing Expo 2017 (VME 2017) which will take place in Hanoi from April 26-28.

The event, the country’s leading exhibition on machinery and technology for manufacturing industry, held by Reed Tradex Co., Ltd, is expected to see over 200 brands from 20 countries, together with five international booths of Japan, the Republic of Korea, Thailand, Singapore and Taiwan (China), heard a press conference in Hanoi on March 23.

They will join other two exhibitions held within the event: “Vietnam Sheet Metal” and “Industrial Components & Subcontracting Vietnam”.

The VME Forum “Highway to Industry 4.0: Smart Factory for Vietnam Manufacturing in Increasing Productivity” will unravel the mystery of Industry 4.0 (the current trend of automation and data exchange in manufacturing technologies) and how manufacturers in Vietnam can make it work for them.

According to Isara Burintramart, Managing Director of Reed Tradex Co., Ltd, Vietnam has shifted to produce higher value products instead of traditional ones. He witnessed significant changes in Vietnam’s industry in the past decade, which still has signs of development especially when the world is entering the Industry 4.0 era.

“I believe that Vietnam’s workforce is ready to learn and step into the Industry 4.0 era. The best way to approach the 4.0 revolution is to do in small steps, starting with a strategy or a pilot project”, he said.

Nguyen Van Thu, Chairman of the Vietnam Association of Mechanical Industry, agreed, adding that the small and simple steps need to be taken immediately.

Investing in human resources should be considered the most important task for local manufacturers in addition to fostering technical innovation and enhancing cooperation among businesses to maximise efficiency and avoid overlapping investments, he said.

In the VME framework, Reed Tradex will join hands with the Vietnam Association of Mechanical Industry (VAMI) to organise a conference on new application and technology in manufacturing mechanical products. The conference is expected to gather 100 mechanical companies.    

Thai products week 2017 kicks off in Hai Phong

The Thailand’s product week 2017 kicked off in the northern port city of Hai Phong on March 23.

The four-day event is part of activities to promote trade and investment among the countries in the Mekong sub-region, namely Cambodia, Laos, Myanmar, Vietnam, as well as ASEAN member nations. It also aims to enhance mutual understanding on culture between Vietnamese and Thai people.

Various types of products like food and beverages, household appliances, jewellery, healthcare products, cosmetics and decorations are on display at more than 70 booths of over 54 Vietnamese companies, who are official importers of Thai products.

The event offers opportunities for Hai Phong’s firms to raise their competitiveness and expand business. 

Several activities were also held at the event, including cooking and dancing performances.

Forum discusses farming startups     

Demand for agricultural products is increasing while resources needed for farming are shrinking, and this provides young people with the opportunity to start up businesses that offer advanced solutions and innovative projects to increase productivity and quality, a forum heard yesterday in HCM City.

Tran Tan Quy, deputy director of the city Department of Agriculture and Rural Development, told the Agricultural Startup Forum that the city’s agricultural production meets just 30 per cent of its 10 million populace’s demand.

This shortfall offers businesses a good opportunity for enhancing production, he said.

The city is focused on developing businesses, and the forum was among the solutions to promote start-ups in the farm sector, he said.

Organised jointly with the Business Studies and Assistance Centre (BSA), it aimed to help students, young entrepreneurs and people with small businesses figure out new projects and initiatives and exchange ideas with experts and successful agricultural businesses, he said.

Nguyen Lam Vien, chairman and general director of Vinamit Joint Stock Company, said young people should research the market to see what is in demand and clearly differentiate their products to attract customers.

Demand for products that are good for health, beauty and longevity has been on the increase globally, including Viet Nam, providing an opportunity for start-ups, he said.

He said start-ups should research into non-chemical agricultural methods to create breakthroughs and grow safer products while protecting the environment.

Nguyen Khac Minh Tri, CEO of Mimosa Tek, said start-ups need to identify their target customers before launching their products.

Young business executives at the forum agreed that finding a good team is very important for a start-up.

“If we have a good start-up idea but not a good team to execute it, we will find it hard to succeed.”

Besides ideas and people, the other important factors for a start-up are strategy, vision and cash.

Besides the Government, many organisations and successful businesses like BSA, the Hi-tech Agricultural Business Incubator and Startup Vietnam Foundation support young people and students who want to begin start-ups.

Vu Kim Anh, director of BSA, said it has organised programmes to help start-ups make business plans, solicit investment and promote consumption of their products.

More than 400 youths and owners of small businesses in HCM City and elsewhere participated in the forum, which also featured an exhibition of agricultural products and smart agricultural control systems.

Blue chips drive VN stocks back up     

Vietnamese shares rose on Thursday after sliding in the previous session, driven by large-cap stocks on high investor confidence.

The benchmark VN-Index on the HCM Stock Exchange increased by 0.9 per cent to close at 719.56 points, and the HNX-Index on the Ha Noi Stock Exchange inched up 0.1 per cent to end at 89.9 points.

The VN-Index was down 0.5 per cent on Wednesday, while the HNX-Index dropped 0.4 per cent.

Market trading liquidity dropped from Wednesday’s level with more than 230.5 million shares being exchanged on the two local bourses, worth VND4.52 trillion (US$200.87 million).

The figures were down 31 per cent in trading volume and 21.3 per cent in trading value compared to Wednesday’s numbers.

The stock market recovered well yesterday, with investors showing strong demand for high-priced stocks, Bao Viet Securities Corp (BVSC) wrote in its daily report. “Yesterday’s gains have proved that investor confidence is very positive at the moment, especially after a fall on Wednesday brought share prices back to their short-term attractive levels,” BVSC said. “However, the level of 720 points will remain a difficult barrier for the VN-Index.”

Local stocks were driven by banking-finance companies and property developers after those firms performed badly on Wednesday.

Six of the nine listed banks advanced, including top large-cap banks such as Vietcombank (VCB), Sacombank (STB) and Sai Gon-Ha Noi Bank (SHB).

Other financial firms also performed well, including insurer Bao Viet Holdings (BVH), Sai Gon-Ha Noi Securities Corp (SHS) and Sai Gon Securities Inc (SSI).

VCB rose 1.5 per cent, SHB added 2 per cent and STB surged 6 per cent. Yesterday’s gain also helped STB rally for a fourth day with a total growth of 10.7 per cent.

In the property sector, Phat Dat Real Estate Development JSC (PDR) gained 2.7 per cent, Sai Gon Thuong Tin Real Estate JSC (SCR) advanced 1.5 per cent, and Vingroup (VIC) was up 2 per cent.

In addition, the market received a strong boost from other sectors, such as food and beverage and agriculture.

Those sectors were pulled up by Hoang Anh Gia Lai JSC (HAG), Hoang Anh Gia Lai Agriculture International (HNG), consumer goods producer Masan Group (MSN) and dairy company Vinamilk (VNM).

VN Index reverses Wednesday's fall     

The VN Index on the HCM Stock Exchange reversed Wednesday's fall to close higher on Thursday morning, driven by banks and financial firms.

The benchmark index rose 0.6 per cent to close at 717.06 points. It fell 0.5 per cent on Wednesday.

More than 99.2 million shares were exchanged on the southern bourse, worth VND1.9 trillion (US$84.8 million).

The banking-finance sector returned to positive territory after performing badly on Wednesday.

Among the six listed banks on the southern bourse, only MBBank (MBB) was down one per cent, while others such as Vietcombank (VCB) and Sacombank (STB) advanced between 0.3 per cent and 2.3 per cent each.

Financial companies, including Bảo Việt Holdings (BVH), Sài Gòn Securities Inc (SSI) and Agribank Securities Corp (AGR), made good gains to contribute to the southern market’s growth.

Food and beverage producers also made gains, with dairy company Vinamilk (VNM) and private equity firm Masan Group (MSN) both increasing.

Hoàng Anh Gia Lai JSC (HAG) and its subsidiary Hoàng Anh Gia Lai Agriculture International (HNG) also gained 2.5 per cent and 6.8 per cent, respectively.

On the Hà Nội Stock Exchange, the HNX Index dropped 0.3 per cent to close at 89.53 points. The northern market index fell 0.4 per cent on Wednesday.

More than 22.4 million shares were exchanged on the northern bourse, worth VND276.15 billion.

Ninh Thuan gives ultimatum to Enfinity

The Ninh Thuan Provincial People’s Committee has given Enfinity Ninh Thuan Co., Ltd. one last chance to submit the required documents or else it would officially withdraw its approval for the company’s long-delayed wind power plant project.

The committee will grant Enfinity one more week to submit a renewed and feasible implementation plan for approval.

The company earlier failed to meet the March 20 deadline, by which it was required to submit the detailed installation plan for the wind turbine, including its location, to the provincial Department of Planning and Investment and the committee, according to Pham Van Hau, deputy chairman of the Ninh Thuan People’s Committee.

Enfinity has also not paid a deposit for the project yet, despite numerous requests from the authority.

In August 2016, the committee asked Enfinity to start the project in December 2016, which it duly failed, and the Department of Planning and Investment had to withdraw its approval of the project. Yet, once again, “positive movements” from Enfinity, according to the committee, along with letters of guarantee from the Belgian and Italian embassies saved the long-behind-schedule project.

The Enfinity wind power project by Belgian company Enfinity received its investment certificate in March 2011 with a total investment capital of $266 million, an area of 533.1 hectares, and capacity up to 124,5 MW. The initial plan was for the wind power plant to be put into operation from December 2012.

Toward the end of 2011, Enfinity’s investors made promises to start implementing the project by the end of 2012, then failed to, and ever since kept requesting extensions.

Later, after two meetings with the Ninh Thuan People’s Committee in August 2016, Enfinity was asked to complete all required procedures to ultimately implement their project by December 2016—otherwise it would be revoked. The project again showed no progress.

“The investor violated the Law on Investment by not following the implementation timeline. Despite the People’s Committee repeated notices, the investor’ constant failure in implementing the project has shown their lack of commitment,” said Hau.

Enfinity earlier also proposed to build a solar power plant with a total investment capital of $200 million on a similar-sized land plot. This project was not licensed.

The committee said it always tries to cooperate with investors, however, they take severe action against those refusing to keep deadlines.

“The Department of Planning and Investment will thoroughly supervise Enfinity’s wind power project, in case of a constant violation of the pledged timeline, the department will notify the committee to withdraw the license,” said Hau.

Vietjet offers new promotional programme for ANZ cardholders

Low cost carrier Vietjet Air has announced the launching of its promotional incentive for cardholders of the Australia and New Zealand Banking Group (ANZ).

Accordingly, from March 25 to April 21, passengers purchasing Vietjet tickets with ANZ credit cards with a total payment of at least VND8 million through the website www.vietjetair.com will have the opportunity to win VND1 million.

The programme is divided into four weeks: March 25-31, April 1-7, April 8-14 and April 15-21. Each week, 15 prizes will be awarded to the first 15 customers who reach the minimum spending with the earliest payment. The awards will be transferred to the primary cardholder's accounts before May 22.

The total payment is accrued from online spending using ANZ credit cards during Vietjet’s promotion programme.

Not only covering airfreighting, the low budget airline also provides consumer goods and services for customers through advanced ecommerce technology applications.

Currently, Vietjet is operating 45 A320 and A321 aircrafts and operating approximately 350 flights a day. It has carried nearly 35 million passengers, with 63 routes covering destinations in Vietnam, as well as international routes to Hong Kong (China), Singapore, the Republic of Korea, Chinese Taipei, China, Thailand, Myanmar, Malaysia and Cambodia.

US$1.3 billion in new investments approved in Binh Duong Province

Binh Duong Province on March 22 presented investment certificates to 21 domestic and foreign projects with total capital of more than US$1.3 billion.

These include the Vietnam-Singapore Industrial Park III infrastructure development project invested by a Vietnam-Singapore joint venture with a total investment of more than US$284.7 million. The project covers 1,000 hectares encompassing Hoi Nghia Ward in Tan Uyen City and Tan Lap Ward in Bac Tan Uyen District.

Another project is a factory producing packages from paper, plastic and aluminum foil for liquid foods invested by Tetra Pak Binh Duong Joint Stock Company (Singapore) in VSIP II-A industrial park with registered capital of US$124 million. The project has an annual capacity of 12 billion products.

Meanwhile, Kolon Industries Inc. from South Korea was granted an investment certificate for a factory producing HMLS polyester threads as a reinforcement material for automobile tires. The US$220-million project will be developed in Bau Bang industrial zone with a capacity of 36,000 tons per year.

Tata Coffee Limited from India received a certificate for its instant coffee factory project at VSIP II-A industrial park with capacity of 660 kilos per hour and investment capital of around US$63 million.

Polytex Far Eastern Ltd of Taiwan, which manufactures polyester fiber and cotton spinning, got approval to increase its registered capital by US$485.8 million, taking its total investment in Bau Bang industrial zone in Bau Bang District to US$760 million. 

According to the Binh Duong People’s Committee, since early this year to date, the province’s authorities have approved 43 new projects with total investment capital of US$793.3 million, up 204% against the same period of 2016. Besides, 18 existing projects have increased their registered capital by more than US$550 million, up 364% in capital over 2016.

As such, the total amount of newly registered and increased capital in Binh Duong has reached more than US$1.34 billion so far this year, helping Binh Duong Province lead the country in foreign investment approvals. This committed capital amount increased by 250% compared to 2016, reaching 96% of this year’s plan (US$1.4 billion).

According to Chairman of Binh Duong Province Tran Thanh Liem, the construction and development of industrial zones have met the needs of investors. Most of the projects are located in industrial zones and clusters in line with the orientation of attracting investment as well as ensuring environmental protection in the province.

Binh Duong’s key sectors including power generation, electronics, mechanical engineering, pharmaceuticals, chemicals and commercial services have captured the interest of many investors.

Binh Duong Province will focus on key markets such as the U.S., the EU, Japan, South Korea, Singapore and Taiwan to call for investment in supporting industries, shoes, clothing and hi-tech projects in the province’s industrial zones.

The cumulative investment in Binh Duong Province has reached over US$27 billion from 2,892 FDI projects, making the province the second largest FDI destination in the country right behind HCMC.

Seven businesses under Health Ministry go public

Seven State-owned enterprises under the management of the Ministry of Health virtually went public in 2011-2016, Minister Nguyen Thi Kim Tien said.

Tien unveiled the data at a review conference held in HCMC on Monday on the restructuring of SOEs under the ministry. The enterprises are completing procedures to transform into joint stock companies in the first and second quarters of this year. 

The ministry is expected to turn an enterprise into a unit under the Science, Technology and Training Department. A vaccine firm is conducting its corporate valuation process and another vaccine enterprise is implementing the Prime Minister’s instruction to get production technology for 5-in-1 and 6-in-1 vaccines.

The ministry still has two enterprises subject to equitization as part of a plan to restructure SOEs under its umbrella in the 2017-2020 period as requested by the Government.

Tien described the restructuring of SOEs as an important task in line with policies of the National Assembly and the Prime Minister.

In related news, the Ministry of Transport has sought the Prime Minister’s nod to halt equitization of Nam Thang Long Hospital as well as transport hospitals in the central cities of Vinh and Danang since public health and educational facilities are not entitled to equitization as specified by Resolution 05-NQ/TW dated November 1, 2016. The hospitals now can use their own funds to finance regular expenditures and investment.

Only Central Transport Hospital started to operate as a joint stock company on January 5 last year with the involvement of strategic investor T&T Group.

HCMC customs tariff collection target for Q1 unobtainable

The HCMC Department of Customs has forecast export-import duty revenues would reach VND24.5 trillion (US$1.07 billion) in the first quarter, up nearly 17% year-on-year, still lower than targeted.

Customs data shows export revenue in quarter one is estimated at US$9.3 billion, a rise of over 10% compared to the same period last year, while import spending is forecast at US$11.2 billion, a year-on-year increase of more than 20%.

The city’s export-import tax revenues are expected at VND24.5 trillion (US$1.07 billion) in the period, up VND3.5 trillion (US$154 million), or nearly 17% year-on-year. Especially, tax revenues have totaled VND9.1 trillion (US$399.3 million) this month alone.

However, the growth target for the year is 25%. The city’s customs department is assigned to collect a staggering VND109 trillion (US$4.7 billion), 38.2% of the sector’s VND285 trillion (US$12.5 billion) this year, up VND6.5 trillion (US$285.2 million) from the 2016 goal.

The department said lower preferential and special consumption taxes had affected import-export duty revenues. For instance, tariffs on cars with less than nine seats imported from ASEAN have been slashed from 40% to 30%.

Even though the oil price has slightly improved, tax revenues from fuel products have remained low. The figure estimated for the first three months is VND4.2 trillion (US$184.2 million), down by VND170 billion (US$7.4 million) over the same period last year, according to the Saigon Port customs office of Region 3 where customs clearance procedures for fuel importing firms are handled.     

Dong Nai sees record local business capital registration

Around 700 local private enterprises, including newly-established ones, in the southern province of Dong Nai have so far this year registered a combined capital of 10.7 trillion VND (480 million USD).

It represents a surge of 140 percent against the same period last year.

In the first half of March alone, around 160 newly-founded businesses accounted for 9.4 trillion VND (421 million USD) of the total, showing a surge of 480 percent.

These figures showed the highest-ever increases in business capital registration in Dong Nai to date, according to the provincial Department of Planning and Investment.

Cao Tien Dung, Director of the provincial Department of Planning and Investment, said business capital registration in the first quarter is often higher than other quarters but a strong increase in this year’s is a surprise.

The new businesses are mostly engaged in the support industry, consumer goods production, export, and construction and many of them are owned by households.

During the reviewed period, 40 enterprises with combined capital of 460 billion VND (21 million USD) were dissolved, mainly due to inefficient operation.

According to the Department of Planning and Investment, Dong Nai has had nearly 35,400 household-owned businesses in the national business registration system with a total capital of 170 trillion VND (7.6 billion USD).  

HCMC should auction golden land plots: expert

Chairman of the HCMC Real Estate Association Le Hoang Chau said that in the long term, HCMC should auction golden land including plots in downtown area to bring a big revenue for the city budget and choose qualified investors to implement projects.

Talking about solutions to tackle abandoned golden land plots in downtown HCMC, he said that the auction would prevent unqualified investors from struggling to obtain these land plots and then letting them abandoned because of insufficient financial ability as present.

In the short term, he said that city should permit free, transparent and public transfer of the land use right of golden land plots to seek suitable and qualified investors.

According to Mr. Chau, golden land plots have been abandoned in downtown HCMC because of spreading investment. Investors believed that they would yield big profit but things were not on plan when the real estate bubble burst affecting their financial ability.

Projects mortgaged for bank loans have become bad debts resulting in long undeveloped situation. Mr. Chau urged banks to join hands in restructuring projects and pump capital and lower interest rate for investors to continue construction.

A leader of the Department of Natural Resources and Environment attributed undeveloped projects at golden land plots to many reasons comprising inspection and land use purpose change. At present, the municipal authorities are tasking the Department of Planning and Investment to consult for the city about ways to tackle the long abandoned land plots in the center areas.

Among the abandoned land plot is the project at 23 Le Duan, District 1. The plot has been known after a noisy auction in 2015 when Tan Hoang Minh Commerce, Service and Hotel Company won the auction after beating 12 rivals with the total funds of VND1,430 billion (US$63 million). That was the record amount which the city obtained from auctioning land use right. The plot measuring 55x55m locates in Le Duan and Nguyen Du streets.

Unexpectedly after the auction session, the company did not pay the winning bid money attributing to price violations. At the end of 2016, the HCMC People’s Committee was issued an ultimatum that if the company did not make the payment, the auction session would be abolished.

The company immediately transferred the amount to the State Treasury. HCMC Lottery Company has removed from the area but the old building has been abandoned while the ground floor has become parking lot.

Another abandoned project, Lavenue Crown complex, stretches in three streets Le Duan, Hai Ba Trung and Nguyen Van Chiem over 4,921 square meters. Investor is a joint venture of HCMC Housing Management and Trading, Kinh Do Corporation (KDC) and Mayflower Investment.

In 2015, inspectors spotted illicit share transfer at the state own housing firm and asked authorized agencies to investigate, causing the project delay until now.

The biggest victim of the delay maybe is KDC which owns 50 percent shares of Lavenue Joint Stock Company and has invested VND600 billion in the joint venture. The investment capital has increased to VND1,050 billion ($46 million) after seven years but the project is now just a parking lot.

Riverside Saigon One Tower at 34 Ton Duc Thang street positions in the intersection of Ham Nghi, Ton Duc Thang and Vo Van Kiet. The project has been half-done after breaking ground in 2009 instead of completing in 2011 as expected. Since 2014, the city has organized many meetings to solve difficulties and speed up the progress of the project without significant move.

With drastic instruction by HCMC leaders, the investor of another project at 1bis and 1k Nguyen Dinh Chieu street has started building foundation.

Meantime, the investor of SJC tower the land plot in four streets Le Thanh Ton, Nam Ky Khoi Nghia, Le Loi and Nguyen Trung Truc has organized groundbreaking ceremony after a decade of delay on December 2. Insider the gate of the plot, there has been only one excavator.

Propak Vietnam 2017 opened in HCMC

ProPak Vietnam 2017, the 12th international processing and packaging exhibition for Vietnam, was inaugurated in HCMC on March 21, featuring nearly 380 firms from 28 countries and territories worldwide.

In particular, there are 11 international group pavilions of participating companies from India, Denmark, Germany, Singapore, South Korea, Taiwan, Japan, China, Thailand, and Italy.

The event at the Saigon Exhibition and Convention Center (SECC) in District 7 has seen a 40% rise in display booths against last year.

High caliber machinery, applications and systems on display involve mainly food processing and packaging; pharmaceutical processing and packaging; bottling and beverage technology; canning technology; barcoding, printing and labeling; filling machinery and systems; food safety and hygiene technology.

The exhibition is being organized by SES Vietnam Exhibition Services Company in partnership with VCCI Exhibition Service Co Ltd.

During ProPak Vietnam 2017 there are ASEAN food seminars and meetings of members between the Federation of Institutes of Food Science and Technology in ASEAN (FIFSTA) and the International Union of Food Science and Technology (IUFoST).

Foreign investors net buy VND8.4 trillion of G-bonds

Foreign investors are net buyers of Government bonds in Vietnam, with their net purchases amounting to some VND8.4 trillion since the beginning of the year.

Market factors have remained favorable for foreign investors’ net purchases of G-bonds. Last week, they net bought VND1.33 trillion of the debt paper on the secondary market, with over VND1.73 trillion purchased and VND403 billion sold.

Foreigners’ net buying of Government debt has picked up since last year when international financial institutions marked a year of constant net purchases with the highest volume ever on the secondary G-bond market.

Even though the transaction volume of foreign investors is not too large compared to the total trading value of the bond market, this marks a big change in the debt market.

Government bonds are still attractive to foreign financial institutions because they are a stable and reliable investment vehicle, with returns higher than other types of investment at home and abroad.

Although bond yields on the secondary market fell slightly last week, they have stayed attractive in comparison with other investments. Specifically, the yield is now 4.01% per year for bonds with a term of one year, 4.574% for two years, 4.75% for three years, 5.084% for five years, 5.49% for seven years, 6.126% for 10 years and 7.082% for 15 years.

Financial institutions have forecast the coupons for G-bonds may fluctuate slightly this week and next.

Since early this year, the State Treasury of Vietnam has sold VND46.88 trillion of Government debt, meaning this agency would have to issue an additional VND18 trillion of debt before the end of the first quarter to realize the target.

Financial institutions suspect the goal could be reached as there are only two more bond auctions before the end of this quarter but the volume to be issued remains huge.

The National Assembly Standing Committee on March 21 began looking into the draft of the amended Law on Public Debt Management. Lawmakers proposed not including debt owed by the central bank and State-owned enterprises in public debt.

In case SOEs fail to pay off their debts, they will have to file for bankruptcy under the law. This would be a major change for Vietnam’s public debt and debt market.

Local cement industry faces overcapacity

Vietnam’s cement producers are struggling with a domestic overcapacity while finding export markets remains a daunting task, Vietnamplus reports.

Since Decree 100/2016/ND-CP and Decree 122/2016/ ND-CP took effect on July 1 and September 1 last year respectively, cement exportation has become challenging. Locally made cement products have been less competitive as they are subject to an export tax of 5%.

Tran Viet Thang, general director of Vietnam Cement Industry Corporation (Vicem), said cement exports have slowed in terms of volume and export value.

Since mid-2016, the cement export price has dipped by US$10 a ton against the end of 2015 while the FOB clinker export price has hovered around US$30 a ton, down 20-25% against 2014.

The industry last year shipped abroad an estimated 15 million tons of cement and clinker worth US$556 million.

Nguyen Quang Cung, chairman of the Vietnam Cement Association, said the country set an annual export target of 20-30% of the industry’s total cement and clinker capacity by 2030. However, the higher export cost has delivered a blow to the cement industry. 

In addition, dropping cement exports will put pressure on domestic consumption and some enterprises may have to shut down, Cung said.

The industry’s total capacity amounted to nearly 88 million tons a year in 2016, and the figure would shoot up to 108 million tons in the next five years.

Regarding export potential, Cung said, Vietnam cannot compete with big rivals such as China, Thailand and India. Since 2014, China has boosted low-priced cement exports to global markets to cope with its overcapacity.

WB-sponsored hydropower plant in Thanh Hoa generates electricity

The second turbine of the Trung Son hydropower plant in the central province of Thanh Hoa began generating electricity for the national grid on March 21, more than one month after its first turbine was launched.

The plant, Viet Nam’s first hydropower project funded by the World Bank through a credit loan, has four 65MW turbines with a combined capacity of 260 MW.

It is expected to provide more than 1 billion kWh for the national grid each year and help control flooding in areas downstream the Ma River.

The plant aims to limit the negative impacts on the environment and improve the lives of local people.

Isuzu Vietnam starts construction of after-sale service centre in Ho Chi Minh City

Japanese automaker Isuzu has picked Tan Phu Trung industrial zone (IZ) in Cu Chi district of Ho Chi Minh City as the location for its after-sale service centre.

Subsidiary Isuzu Vietnam is a joint venture operating in assembling and distributing vehicles with the brand Isuzu, the world leading brand for commercial vehicles and diesel engines. The 1-hectare centre received its investment certificate on December 9, 2016. Construction started on March 22 at Lot B6-6 D2 road in the IZ. The centre will be completed and start operation in September this year.

The centre will provide repair and warranty services. It is aimed to diversify Isuzu Vietnam’s business, improve the quality of its products and services and increase the competitiveness of the company to meet the demand of customers.

The company chose Tan Phu Trung IZ due to its convenient location and smart planning. The cooperation between the two will contribute to enhancing the image of Cu Chi district.

At the moment Tan Phu Trung IZ has attracted 70 investors. Many plants have started production. Its convenient location and smart planning as well as investment incentives have made the IZ very appealing to both domestic and foreign investors. The IZ commits to supporting the investors and facilitating their operation in order to bring them long-term stability and a base for future development.

US raises bar on seafood imports to curb illegal fishing, fraud

The US Department of Commerce (DOC) has announced the establishment of a new program that will trace specific fish and fish products from harvest to entry into the US markets.

The program is necessary said the National Oceanic and Atmospheric Administration (NOAA), an agency of the DOC, to protect the US national economy, global food security, and the sustainability of the world’s shared ocean resources.

NOAA Fisheries will administer the new – Seafood Import Monitoring Program – aimed at further curbing illegal, unreported and unregulated fishing practices and identifying misrepresented seafood imports before they enter the US market.

The program requires that importers report information and maintain records about the harvest, landing and chain of custody of imported fish and fish products for certain priority species identified as especially vulnerable to fishing and seafood fraud.

Further, the NOAA noted that the program will eventually expand to include all species of fish and seafood imported into the US market.

“As a global leader in sustainable fisheries management and seafood consumption, the US has a responsibility to combat illegal practices that undermine the sustainability of our shared ocean resources,” said Dr Kathryn Sullivan, NOAA administrator.

“We designed this program to further ensure that imported seafood is legally harvested and truthfully represented, with minimal burden to our partners.”

This rule, she continued, is a critical step forward in combating illegal, unreported and unregulated fishing practices and seafood fraud.

It sends an important message to the international seafood community that if they are open and transparent about the seafood they catch and sell across the supply chain, then the US markets are open for their business, said Catherine Novelli.

Ms Novelli, who serves as the Under Secretary of State for Economic Growth, Energy, and the Environment at the US Department of State noted that the rule will build on similar global efforts and will provide confidence to US consumers in the seafood they eat.

She added that it will also level the playing field for honest fishers across the world who play by the rules.

The US will use the existing International Trade Data System to collect seafood catch and landing documentation for the priority seafood species. This data system is the US government’s data portal for all imports and exports.

January 1, 2018, is the mandatory compliance date for most priority species listed in the rule. Implementation of these rules for farmed shrimp and abalone will be effective at a later date to be announced.

NOAA and the Food and Drug Administration (a federal agency of the United States Department of Health and Human Services) have committed to working together to identify potential pathways to close these data gaps through food safety authorities at the FDA.

The Presidential Task Force on Combating IUUFishing and Seafood Fraud, co-chaired by the Departments of Commerce and State, called for the formation of this program.

NOAA sought public comment for the proposed design of this program, and the final rule reflects feedback from international partners, the fishing and seafood industries, trade and consumer sectors and conservation community.

The list of priority seafood species includes abalone, Atlantic cod, blue crab (Atlantic), dolphinfish (mahi mahi) grouper, king crab (red), Pacific cod, red snapper, sea cucumber, sharks, shrimp, swordfish, and tuna (albacore, bigeye, skipjack, yellowfin and bluefin).

ABBANK committed to environmental responsibility

The An Binh Commercial Joint Stock Bank (ABBANK) has officially become a member of the United Nations Environment Programme - Finance Initiative (UNEP FI), pioneering in response to climate change and fulfillment of social and environmental corporation responsibility.

ABBANK has adopted the State Bank of Vietnam’s directive to promote green credit growth and manage environmental and social risks in financial operations. 

It has integrated sustainability into its risk management and credit granting process by giving priority to projects which have no adverse environmental impacts and power-efficiency or use renewable energy and green technologies.

ABBANK has an Exclusion List that defines the types of projects the bank does not finance and will classify projects according to levels of their social and environmental risks.

It has been offering three ODA-funded loans with strict requirements on environmental protection, including Small and Medium Enterprise Finance Programme (SMEFPIII) financed by the Japan International Cooperation Agency (JICA), the Rural Development Fund (RDFII) and the Vietnam – Sustainable Agriculture Transformation (VNSAT).

“Becoming a member of UNEP FI is significant to facilitate the green credit growth at ABBANK and in line with the national green growth strategy, an initiative to fulfill its corporate social responsibility by contributing to community and environment. Moreover, this creates a foundation for product development in the future in order to increase the green credit portfolio at ABBANK. This helps the bank prevent the financial risk and reputational risk during the normal course of business and strengthens the brand image in the financial market in general and in this segment in particular,” ABBANK CEO Cu Anh Tuan stated.

The UNEP FI is a public-private partnership between the United Nations Environment Programme (UNEP) and the financial sector. It seeks to encourage the better implementation of sustainability principles at all levels of operations in financial institutions, namely through the incorporation of environmental, social and governance factors in risk analyses.

Joined by over 200 institutions, including banks, insurers and investors, the UNEP FI placed great emphasis on promoting sustainable development by encouraging the integration of environmental considerations into all aspects of their operations and services.     

LienVietPostBank has proposed adjusting the 2016 dividend payment plan following improved business performance.

The bank has proposed paying dividend of 10 per cent instead of 8 per cent as approved by the bank’s shareholders meeting last year. The adjustment plan will be considered for approval at the bank’s shareholders meeting this year on March 25 in HCM City.

LienVietPostBank posted pre-tax profit of nearly VND1.35 trillion (US$60.26 million) in 2016, 3.2 times higher than the previous year.

Thanks to a recoupment of VND509 billion of non-performing loans (NPL) in 2016, the bank’s NPL ratio by the end of 2016 stood at 1.08 per cent of total outstanding loans.

The bank plans to increase charter capital from VND6.46 trillion to VND7 trillion this year through the issue of 54 million shares.

Binh Duong records top 2017 FDI inflow     

The People’s Committee of southern Binh Duong Province granted investment certificates to 21 projects worth US$1.3 billion, the first batch of projects to receive the go-ahead this year on Wednesday.

Of these, 10 are new foreign direct investment (FDI) projects whose registered capital totals around $740.7 million, and eight are existing FDI projects that had applied for capital increase totalling $536 million. The remaining three projects are by local investors and have combined registered capital of VND740 billion ($32.8 million).

Tran Thanh Liem, chairman of the provincial People’s Committee, said the new projects and project expansion plans reflect investor confidence and long-term commitment to contributing to the province’s development.

So far, the province has attracted $27 billion of FDI from around 2,900 projects, ranking second in FDI capital scale, after HCM City. However, the amount of FDI capital flowing into the southern province has been higher since the beginning of 2017. 

Mapletree Investments opens 1st office tower in VN     

Mapletree Investments Pte Ltd, a Singapore-owned real estate developer, on March 22 saw its first office tower in Viet Nam inaugurated by Singapore Prime Minister Lee Hsien Loong and Viet Nam Deputy Prime Minister Trinh Dinh Dung.

Mapletree Business Centre is a 17-storey tower with 28,384sq.m of floor area and designed to international grade A specifications.

It has attracted plenty of leasing interest and its tenants include Standard Chartered Bank, Uniben, Far Eastern Polytex and SCC UK.

The completion of the office tower marks the second phase of precinct transformation at the 4.4ha Saigon South Place Complex in District 7.

Saigon South Place Complex, a mixed-use project, is being developed in phases by Mapletree, with the first phase being a joint venture with Saigon Co.op to develop SC VivoCity shopping mall in 2015.

An Oakwood-branded serviced apartment and a high-rise residential block RichLane Residences are on track for completion by the end of this year.

There are also plans for two more office towers.

Edmund Cheng, chairman of Mapletree, said, “Tapping on our rich experience in rejuvenating the HarbourFront and Alexandra precincts in Singapore, we aim to create a work-live-play environment by combining lifestyle, office and residential at Saigon South Place Complex.”

The company entered Viet Nam more than 12 years ago and has grown from one logistics project into one of the largest Singaporean real estate companies in Viet Nam by investment.

After unveiling the plaque of Mapletree Business Centre, Lee and Dung toured Co.opXtra, a hypermarket set up by Saigon Co.op and Singapore’s NTUC FairPrice at SC VivoCity.

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